On Tuesday, the Senate adopted GEO 119/2022 regarding the capping and compensation of electricity prices, expanding the list of those who benefit from a capped price for consumption until August 31, 2023, but the Ordinance will be debated by the Chamber of Deputies, which is the decision-making body in this case.

According to the amendments adopted by the Senate, the number of those who will benefit from capping increases, and the settlement threshold of 1,300 lei/MWh is eliminated for suppliers of last resort (FUI), with the exception of customers that were recently taken over. At the same time, energy producers have the obligation to sell through directly negotiated bilateral contracts at least 70% of their own production available “from their own production”, to suppliers with final customers, Transelectrica, distributors and large industrial consumers, according to e-nergia.ro.

For their part, suppliers who have at least 100,000 customers in their portfolio and a consumption of at least 500 GWh in 2021, have the obligation to conclude contracts for a minimum term of three years covering 70% of their customers’ consumption for the next three years.

The new law also provides that the final price billed by electricity suppliers is a maximum of 0.68 lei/kWh, including VAT, for household customers whose average monthly consumption is between 0 – 100 KWh and a maximum of 0.80 lei/kWh , with VAT included, for household customers whose average monthly consumption is a maximum of 255 kWh.

The Senate established that a capped price for electricity will benefit both household consumers who in 2021 had an average monthly consumption of less than 300 KWh, but also those who, although in 2021 had an average monthly consumption of more than 300 KWh, this year will save and fall within the established ceilings, according to Agerpres.

The final price billed by natural gas suppliers is of a maximum of 0.31 lei/kWh for household customers and a maximum of 0.37 lei/kWh for non-household customers.

According to the amendments adopted by the Senate, among the beneficiaries from the economic environment and from public institutions for which electricity is billed at a maximum of 1 leu/kWh, including VAT, for 85% of the average monthly consumption, there are small and medium-sized enterprises, operators that provide public utility services, including Metrorex SA, economic operators in the field of the food industry, scientific and technological parks, public enterprises that administer or manage investments in the field of sports, administrators of industrial parks, manufacturers and distributors of medicines, pharmacies that use a cold chain, the places of worship officially recognized in Romania.

Another amendment adopted by the two reporting Committees – for Energy and Economy – and appropriated by the Senate plenary establishes that 0.68 lei/kWh, including VAT, will be paid for the entire consumption achieved by household customers who have at least three children with age up to 18 years, respectively 26 years, in the case of following a form of education.

Consumers who use devices, apparatus or medical equipment necessary for the treatment, based on the self-responsible declaration, will benefit from the same facility for the entire consumption.

“Starting with September 1, 2022, electricity producers, through directly negotiated bilateral contracts, have the obligation to sell at least 70% of the electricity available in their own production only to electricity suppliers who have end customers in their portfolio, intended exclusively for their consumption. (…) Suppliers who have a portfolio of end customers representing at least 100,000 places of consumption and have a consumption in the previous year of at least 500 GWh are obliged to conclude contracts for a minimum term of three years, with delivery of more than one year, which will cover at least 70% of the quantity supplied in 2021. Large final energy customers will conclude five-year contracts that will cover at least 40% of the annual consumption achieved in 2021,” states another amendment adopted by the Senate.